Globalfoundries Celebrates the Topping-Out Ceremony for Its Expansion Project

Dresden continues to grow as a semiconductor hub: Just under seven months after construction began, microchip manufacturer Globalfoundries celebrated the topping-out ceremony for the expansion of its plant in the state capital. The company plans to develop and produce so-called Physical AI applications in Dresden for the automotive, aerospace, and defense industries, among others, as it announced during the celebration.

Physical AI refers to robots powered by artificial intelligence that take over production processes. For sectors with particularly high security requirements, such as critical infrastructure, Globalfoundries also plans to use the new production capacities to offer processes and data flows that take place exclusively in Europe.

“Next-generation” microchip development in Dresden

“Europe’s industrial base relies on chips that are not only available and trustworthy but are also manufactured close to the customers who urgently need them,” said CEO Tim Breen. The expansion of production capacity in Dresden also gives customers access to the next generation of energy-efficient computing power for Physical
AI.

The total investment for the “Sprint” expansion project amounts to 1.1 billion euros; 495 million euros in funding for the expansion is coming through the European Chips Act.

Globalfoundries already employs 3,000 people at its Dresden site. Production will continue during construction in a cleanroom and laboratory area of 60,000 square meters; the expansion will add another 5,000 square meters. By the end of 2028, annual production capacity is expected to rise from up to 950,000 to more than one million 300-mm wafers.

“Silicon Saxony” semiconductor hub is growing

With production expansions at Globalfoundries and Infineon, as well as the arrival of Taiwanese industry giant TSMC in Dresden, “Silicon Saxony” continues to grow as Europe’s largest microelectronics hub, according to the Ministry of Economic Affairs. The network consists of approximately 3,600 companies with over 80,000 employees. The number of employees is expected to grow to around 100,000 by 2040.